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Indian shares hit record high on Reliance, HDFC Bank boost

BENGALURU, Dec 28 (Reuters) - Indian shares hit a record high on Monday, led by gains in Reliance Industries Ltd and HDFC Bank Ltd, while U.S. President Donald Trump’s approval of a pandemic relief package aided risk sentiment globally.

The NSE Nifty 50 index was up 0.68% at 13,842.45 by 0447 GMT, while the S&P BSE Sensex was 0.61% higher at 47,261.09. Both indexes hit record highs.

The Nifty and Sensex have each gained about 7% so far in December, with the former hitting record intraday highs 11 times this month.

Meanwhile, broader Asian shares rose at the start of the final trading week of 2020 as Trump signed into law a pandemic aid and spending package, averting a partial federal government shutdown in the United States.

“Absence of negative trigger is more relevant now, there is no sign of reversal of liquidity or interest rate trajectory and as long as those signs are not there, markets will continue to chug along,” said Deepak Jasani, head of research, HDFC Securities.

Global stock markets have been awash with large amounts of liquidity, thanks to measures taken by various central banks to help cope with the fallout from the ongoing pandemic. Analysts, however, have warned that stocks remain overvalued and are due for a correction.

Shares in India’s most valuable firm Reliance Industries rose 1.2% to their highest since Dec. 21, while HDFC Bank advanced 1.35%, gaining for a fourth straight session.

Reliance said it would buy out IMG Worldwide LLC from its sports management joint venture for about $7 million on Thursday.

The Nifty banking, PSU Bank, and financial indexes rose between 1.33% and 1.06%.

Shares of carmaker Tata Motors Ltd climbed 4.29%, boosting the Nifty Auto Index more than 1%.

Reporting by Chandini Monnappa in Bengaluru; Editing by Vinay Dwivedi

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